Odyssey Reincarnates Itself

11/22/1998 7:00 PM Eastern

By: LINDA MOSS

Some cable operators and ad-agency executives last weekwere questioning Odyssey Channel's plans to relaunch as a broad-based family-entertainmentnetwork in April, saying last week that cable has a glut of those programming servicesalready.

The new ownership of Odyssey  which now includesHallmark Entertainment and The Jim Henson Co. as 45 percent owners  unveiled itspumped-up programming strategy last Monday, as well as naming Margaret Loesch presidentand CEO of the service.

Odyssey plans to spend $200 million for programming overthe next three years, mainly on original and library product from Hallmark and Henson fare such as Gulliver's Travels, The Odyssey, Merlin, MobyDick and The Muppet Show.

Loesch, the former vice chairman of Fox Kids Worldwide,said Odyssey, which has occupied the faith-and-values niche, will also air 40 hours perweek of religious and spiritual programming under the terms of its new partnershipagreement.

But overall, the revamped Odyssey will be a broad-basedchannel targeted toward adults 18 to 55, according to Loesch. While she said it will"be appealing to today's family," she declined to use the term "familyprogramming" to describe it. Instead, she said, its spirit will be "quality,classy and fun," with some kids' appeal via programming from the Henson library.

It remains to be seen whether cable operators will consider30 million-subscriber Odyssey's repositioning to be so different from its old format thatthey find it to be in conflict with current affiliation agreements.

"My concern is that by moving away from their core ofreligious programming, they may be moving away from the reason why some operators decidedto pick them up in the first place," said John Murawski, director of productdevelopment for The Lenfest Group.

Murawski added, "Their strength wasmultidenominational religious programming, but they're moving toward what the old FamilyChannel used to be."

Jerry McKenna, vice president of strategic marketing forCable One, had a similar take on Odyssey's repositioning, which will put it in an arenathat includes the revamped Fox Family Channel, Disney Channel and Pax TV.

"In our markets, there is a desire for religiousprogramming," McKenna said. "But [Odyssey is] entering a competitive field[family-oriented networks], and I think that they'll have a bumpy road."

Cable One is in the process of standardizing its programlineups across all of its systems, signing carriage deals so far with 15 of the 35networks that it intends to carry throughout its 650,000 homes.

Five additional slots will be left at the discretion of thelocal systems. McKenna said his systems could use those slots to pick religious- andethnic-programming services on a local basis, so they will have to decide if Odyssey fitsthe bill for them.

But operators weren't the only ones raising eyebrows aboutOdyssey's game plan. At least one Madison Avenue executive did, too.

"It sounds like another general-entertainment cablenetwork," said Steve Grubbs, executive vice president and director of national TVbuying at BBDO Worldwide. "At some point, you have to wonder how manygeneral-entertainment networks the marketplace can support."

Odyssey officials maintained that cable-operator reactionto the spring relaunch has been good, so far.

"We really haven't canvassed all of the MSOs, but theinitial reaction has been positive," Loesch said. "We have to be sure thatpeople understand what we're trying to do. We're not abandoning the basic tenets [ofOdyssey]: We're doing something bigger and better."

Other industry observers, including one cable operator,predicted that Hallmark's and Henson's high-quality programming will attract viewers, withtheir 4,000-hour combined library and original fare.

Odyssey plans to debut three to five original series peryear from Hallmark and Henson, and it also aims to do 12 original movies annually, as wellas additional specials.

"It sounds like some proven software," said TimSpengler, senior vice president and general manager of national TV for WesternInternational Media Corp. "[Hallmark and Henson] are programming kings. They bringthe right credentials to the table, and I wouldn't be surprised if they attractviewers."

Lynne Buening, vice president of programming for FalconCable TV Corp., had similar faith in Odyssey's new partners.

"The backbone of Henson and Hallmark will make itwork, " she said. "They've got the legs and the muscle to do it."

And if anyone can build a brand for Odyssey, it's Loesch,who most recently was president of the Henson Television Group, observers said. Sheaccomplished that goal for Fox Kids, according to Bill Carroll, director of programmingfor Katz Television.

"She really established Fox Kids," he said."Most point to her as the architect of their success."

Hallmark and Henson last week said they had finalized theirdeal to acquire a shared 45 percent stake in Odyssey for $100 million. Under therestructuring, Odyssey's veteran owners  Liberty Media Corp. and the NationalInterfaith Cable Coalition Inc.  will get 32.5 percent and 22.5 percent shares,respectively, in the network.

Odyssey will be different from the revamped Fox Family andPax TV, according to Loesch.

"It won't be a children's channel," she said."It won't be a channel specifically targeted to compete against Disney [Channel] orFox Family. It is a broad-based channel positioned for adults, and a channel that kids canwatch with adults It will be reminiscent of the programming when I was a littlegirl."

Loesch said Pax TV is skewing toward an older audience thanwhat Odyssey is looking for, and she claimed that Odyssey will do a better job blendingits religious shows with the rest of its schedule  which, she maintained, Fox Familyhas failed to do with The 700 Club.

Jeff Sagansky, president of Paxson Communications Corp.,said there's room for more than one family-style channel, but he thinks that his Pax TVservice has an edge.

"We have a huge head start over Odyssey," hesaid. "It's mostly going to be a library channel. We're going to have lots oforiginal programming. And we have a lot more visibility."